OMG guys...
OT have you ever wondered why USA has a trade defecit? It is because the USA is currently the largest consuming country in the world. You don't have enough basic resources or production capacity to suppy what you produce. Therefore you have to import it. A number of years ago everyone around the world was happy supplying you with raw materials, (ie, iron ore, oil, logs and the such). Today these economies have matured and are value adding and supply you with the finished products, (ie cars, plastics, stero's and lumber). This is because as your economy grew and standard of living increased, wage increased and cost's of production increased, but the consumer wasnt willing to pay the higher cost for imported goods. Now I know you are smart enough to see where this all ends up. If the US was to be completely protectionist and isolationist, this would mean you would have to draw all of your influence from around the world home, leaving a vacuum in the world politics for countries like China and Suadi Arabia. This wouldnt be good for the USA or the world. Also the Americain citizen would have to lower their expectation for a higher standard of living, cause more of their paycheck would be going to food, housing and heating.
In conclusion, when it comes to trade and world politics, if you want to see what being isolationist and protectionist will do, look to North Korea, its not a pretty picture. The other consiquence would be a general depression and further devaluing of the US greenback, just look to Chilli to see what this does to a country. There is lessons all over the world to what will happen. So becareful what you wish for, you just might get it..... :!:
OT have you ever wondered why USA has a trade defecit? It is because the USA is currently the largest consuming country in the world. You don't have enough basic resources or production capacity to suppy what you produce. Therefore you have to import it. A number of years ago everyone around the world was happy supplying you with raw materials, (ie, iron ore, oil, logs and the such). Today these economies have matured and are value adding and supply you with the finished products, (ie cars, plastics, stero's and lumber). This is because as your economy grew and standard of living increased, wage increased and cost's of production increased, but the consumer wasnt willing to pay the higher cost for imported goods. Now I know you are smart enough to see where this all ends up. If the US was to be completely protectionist and isolationist, this would mean you would have to draw all of your influence from around the world home, leaving a vacuum in the world politics for countries like China and Suadi Arabia. This wouldnt be good for the USA or the world. Also the Americain citizen would have to lower their expectation for a higher standard of living, cause more of their paycheck would be going to food, housing and heating.
In conclusion, when it comes to trade and world politics, if you want to see what being isolationist and protectionist will do, look to North Korea, its not a pretty picture. The other consiquence would be a general depression and further devaluing of the US greenback, just look to Chilli to see what this does to a country. There is lessons all over the world to what will happen. So becareful what you wish for, you just might get it..... :!:
